The £7,188,199 Ticking Time Bomb for Chelmsford Landlords

“I just love looking over and keeping up to date the 170 pieces of legislation that govern the rental of residential property in the UK”

…No Chelmsford Landlord, ever

If you are one of the 2,377 Chelmsford landlord’s that manages your own property, would it surprise you to know that there are 108 separate pieces of legislation that govern the rental of private houses to tenants. Oh, and on top of the 108 pieces of law, there are further 300+ regulations in the mix. Whilst Chelmsford landlords may once have preferred to manage their Chelmsford buy-to-let properties themselves to boost their profits, many Chelmsford landlords are starting to see this as a false economy.

In the last four years, an additional 914 landlords in Chelmsford have converted from self- managed to having their property managed by a letting agent in Chelmsford, taking the total number of properties under management in Chelmsford to 3,718 (out of a total of 6,095 private rental properties in Chelmsford).

Now, don’t get me wrong, self-managing your Chelmsford rental property can be a very fulfilling experience, allowing you as a Chelmsford landlord to build a deep relationship with your tenant and your emergency 24 hour plumber, builder (happy to do small jobs at a drop of a hat), decorators, first name terms with their deposit provider, lawyer and EPC provider to name but a few. (Wow!)

Also, did you know if your tenants deposit isn’t registered, or doesn’t continue to be registered after the end the periodic tenancy upon renewal … you could be fined up to three times your deposit? With average rental deposit in Chelmsford being £1,008, each self-managed landlord in Chelmsford could be fined £3,024 per tenancy if the deposit isn’t currently registered. Therefore…

…if every deposit of every Chelmsford self-managed landlord’s property wasn’t registered, the total fines would amount to £7,188,199

Now of course, I am not suggesting for one minute all the self-managed landlords of Chelmsford haven’t registered their deposits, yet almost on a daily basis, I come across horror stories to that effect. Another two (but by no means all) hot issues that the Courts are cracking down on, are doing immigration ‘Right To Rent’ checks on all tenants (yes all tenants) and confirmation proving the tenant received the ‘How to Rent’ guide. If that second issue cannot be proved (a ‘sent’ email won’t suffice), the landlord cannot serve the section 21 Notice, meaning the tenant cannot be served notice to vacate the property.

To many, it’s really a case of DIY or getting a qualified professional in … as those additional Chelmsford landlords mentioned above have done since 2014. You might say, “Of course you are going to say all this – you are a Letting Agent”. Well the choice really comes down to your time and your knowledge. If a Chelmsford landlord is not equipped, or able, to devote time keeping up-to-date of legislation and law nor doesn’t want to be bothered 24/7/365 about a blown light bulb, dripping taps, have that confrontational conversation with their tenants about missing rental payments, or arbitrate arguments and disagreements between your tenant and the neighbours, it is perhaps better to pass this accountability/responsibility onto a letting agent.

One thing I would say is all letting agents aren’t the same. Would it surprise you to know that letting agents aren’t regulated?

Chelmsford landlords that do use a letting agent should not forget that passing over management to a letting agent doesn’t mean they can disregard legislation and they are still responsible for deposit/rent repayment legal directives, civil fines or action if the letting agent makes a mistake. Therefore, it’s important to pick a respectable letting agent from the start.

Nevertheless, for those Chelmsford landlords that see their job as a professional landlord and want to be intricately involved in the day to day administration of their rental properties, it can be worthy pursuit.

If you are a self-managed landlord in Chelmsford, and want to know if your paperwork is in order please feel free to drop me a line and I am more than happy to do an ‘MOT’ on it to ensure you are the right side of the law.

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Welcome

This blog follows the buy-to-let market in Chelmsford. You'll find tips, guidance, and analysis that relates specifically to Chelmsford and you'll also find properties from all the estate agents in the town on here that may make decent investments. I operate Martin and Co in Chelmsford and if you're thinking of buying a property to let in Chelmsford, I'm happy to offer a second opinion.

Meet the Author

Stephen Frost
Hi, and thank you for visiting this blog. I have been in the Chelmsford Property market since 2008, owning and running with my excellent colleagues, the Martin and Co office in Chelmsford.
I have always shared my thoughts on the local property market in Chelmsford with my landlords, but now I want to share with everyone in the town.
On this blog, Emma and I will talk about what is happening in the town's property market itself, even looking at specific streets or housing estates. At other times, we will post what we consider decent buy to let deals. Some will be on the market with me (as we also sell property), but others will be on the market with other agents in Chelmsford. We like to look at the whole of market and give you, what we consider the best investment opportunities.
If you see a potential deal, and want a second opinion, without hesitation, email the Rightmove link to stephen.frost@martinco.com . we will always give you our honest opinion on the property and its investment potential. (both good and bad) .